“Last year’s results prove the importance of CEZ for the Czech economy. In terms of taxes and dividends, the CEZ Group contributed some CZK 43 billion to the state budget last year, which is CZK 2 billion more than the year before. It is also a very positive signal that CEZ is one of few energy corporations that were able to maintain their rating throughout the last year. Although the year 2012 will probably bring just limited opportunities for growth in the energy sector, we believe that we will bring better results to our shareholders than last year,” believes Daniel Beneš, Chairman of the Board of Directors and Chief Executive Officer of CEZ.

In response to the uncertain development in the energy markets and unclear outlook for the European economy, last year in autumn the company updated its NEW VISION program and extended it with five strategic initiatives, the fulfillment of which should ensure stable financial results and a growing value of the CEZ Group.

“The priorities of our strategy include in particular the completion of additional blocks of the Temelin Nuclear Power Plant; until 2015 we are primarily going to concentrate on flawlessly and thoroughly preparing the entire project and finalizing our tender for a technology supplier. We also focus on improving our internal performance and procuring fuel for our power plants. More emphasis is as well placed on local energy sources and developing renewable sources abroad,” Daniel Beneš added.

As the least indebted energy group in Europe, CEZ has the best head start to succeed even in this difficult period when the crisis and changes, in particular on the level of European regulation, have a significant impact on the energy sector.

In 2011, the CEZ Group’s total power production in the Czech Republic reached the same level as in 2010, that is 63.3 TWh. The Temelín and Dukovany nuclear power plants generated 0.3 TWh (1%) more in 2011 than the year before. Coal power plants generated the same amount of 32.6 TWh as in 2010. On the other hand, the amount of power generated from renewable sources declined by 17% year on year, primarily due to the fact that in 2010 the rainfall and water flow were significantly above the average, and hydro power plants thus generated the second highest amount of power in history. The CEZ Group’s power generation results abroad significantly grew by 14% to 5.9 TWh. The amount of power generated from renewable sources abroad jumped up by 151%, mainly due to the gradual launch of the largest European wind part in Romania.

The data for 2011 also indicate a year-on-year stagnation in power consumption. Based on preliminary data for 2011 adjusted to the normal temperature level, the demand for power in the Czech Republic increased by 0.3%.

Table: Financial results of the CEZ Group for 2011

                                                                                          (CZK billion)         YoY change in %